Do you miss the days of "lot cars" ?
09-10-2021, 11:31 PM
#46
Drifting
The dealers are doing better than ever. Sales volumes are down about 15% across the board but the vast majority of sales are at MSRP which more than makes up for the volume loss since dealers were routinely discounting vehicles 5-7% or more before the pandemic. There is very little inventory on the lot, but vehicles are being sold before the car even hits the lot so the dealers are spending much less on financing their inventory as well.
09-11-2021, 11:50 AM
#47
And that's exactly why this is never going to return to normal - at least not for the premium brands. They like to sell this way, they want to lock in the price inflation, and squeeze the inventory channel to nothing. The end of the "chip shortage" won't mean anything to them.
09-11-2021, 02:05 PM
#48
Drifting
But a brand like Porsche or Mercedes or BMW or models like the Corvette or the Bronco isn't going to see that big drop in demand. That's why this is permanent for them. Sure, someone paying over MSRP for a Kia, there aren't too many people left willing to do that.
09-11-2021, 03:09 PM
#49
Likely will happen the next time a recession with a sustained stock market decline occurs. Dealers like the current situation, but the automakers who have huge fixed cost tied up in engineering/tooling/labor/legacy costs need to put out as many cars as possible so they will not do anything to maintain the current situation.
Last edited by malba2366; 09-11-2021 at 03:12 PM.
09-20-2021, 12:21 PM
#50
Rennlist Member
09-20-2021, 01:58 PM
#51
“Better than ever”?? Just came back from the dealership where I bought my 992S…in the metro DC area. They had 3 vehicles on the lot waiting to be prepped and delivered. Already spoken for and all SUV’s. So, I think they would strongly disagree with your comment. That said, this may be dependent on specific dealerships, but I doubt it?
As an aside, and what he said Porsche is doing to get around the chip shortage on some of their vehicles….some of the (electronic) options on the car, like adjustable steering wheel and 14-way seats, will be retrofitted (via a recall after certain chips become available)…and not fitted at the factory during the assembly. His comment to me was….”I don’t know about you, but I don’t want a shop mechanic taking apart my seat, or steering column, after the fact…I would feel a LOT more assured if it’s built into the car right at the factory”.
Some reference points:
(1) My SA told me today that they (the dealership) is averaging about one 911 allotment, per month, with about a 9+ month delivery time. It’s been that way since last Spring.
(2) While a dealership is happy to take your meager deposit (my dealership requires a $500 deposit at signing, with a partial payment of $5K not due until you receive your allotment)…and if you walk in today, that could be a LONG time before you receive an allotment. It’s my understanding that nobody is making any real money until the cars actually get delivered and the customer takes ownership - that’s when real money is exchanged.
(3) My SA told me that his (personal) income is tied to two factors: (a) Commission(s) from the delivery of a car(s), and (b) Bonuses that are based on cars/volume delivered. He flat out told me that no SA’s at the dealership where he works, is receiving any bonuses right now. Depending on the SA, that could be a huge financial hit.
As an aside, and what he said Porsche is doing to get around the chip shortage on some of their vehicles….some of the (electronic) options on the car, like adjustable steering wheel and 14-way seats, will be retrofitted (via a recall after certain chips become available)…and not fitted at the factory during the assembly. His comment to me was….”I don’t know about you, but I don’t want a shop mechanic taking apart my seat, or steering column, after the fact…I would feel a LOT more assured if it’s built into the car right at the factory”.
There is very little inventory on the lot, but vehicles are being sold before the car even hits the lot so the dealers are spending much less on financing their inventory as well.
(1) My SA told me today that they (the dealership) is averaging about one 911 allotment, per month, with about a 9+ month delivery time. It’s been that way since last Spring.
(2) While a dealership is happy to take your meager deposit (my dealership requires a $500 deposit at signing, with a partial payment of $5K not due until you receive your allotment)…and if you walk in today, that could be a LONG time before you receive an allotment. It’s my understanding that nobody is making any real money until the cars actually get delivered and the customer takes ownership - that’s when real money is exchanged.
(3) My SA told me that his (personal) income is tied to two factors: (a) Commission(s) from the delivery of a car(s), and (b) Bonuses that are based on cars/volume delivered. He flat out told me that no SA’s at the dealership where he works, is receiving any bonuses right now. Depending on the SA, that could be a huge financial hit.
Last edited by CodyBigdog; 09-20-2021 at 03:08 PM.
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Go Bruins (09-24-2021)
09-24-2021, 04:09 PM
#52
Three Wheelin'
no demo car for test drive is reallly a PITA